{"id":92,"date":"2026-05-11T05:16:27","date_gmt":"2026-05-11T09:16:27","guid":{"rendered":"https:\/\/arvcalc.com\/blog\/after-repair-value-guide\/"},"modified":"2026-06-04T01:42:08","modified_gmt":"2026-06-04T05:42:08","slug":"after-repair-value-guide","status":"publish","type":"post","link":"https:\/\/arvcalc.com\/blog\/after-repair-value-guide\/","title":{"rendered":"After Repair Value (ARV): How to Estimate It Accurately (2026)"},"content":{"rendered":"<p class=\"has-medium-font-size\"><strong>After repair value (ARV) is the estimated market price of a property after renovations are complete.<\/strong> For fix-and-flip investors, BRRRR investors, and wholesalers, ARV is the single most important number in any deal. Get it wrong by 10%, and a profitable project turns into a loss.<\/p>\n<p>ARV is not a formula you can calculate from a spreadsheet. It is an estimate based on comparable sales \u2014 recently sold properties in the same area with similar features in post-renovation condition. That makes it part science, part judgment, and part local market knowledge.<\/p>\n<p>This guide covers how to estimate after repair value accurately, the methods appraisers actually use, and the mistakes that cost investors the most money.<\/p>\n<p>Run your own estimates with the <a href=\"\/arv-calculator\">ARV Calculator<\/a> as you read through each section.<\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_83 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/arvcalc.com\/blog\/after-repair-value-guide\/#What_Is_After_Repair_Value\" >What Is After Repair Value?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/arvcalc.com\/blog\/after-repair-value-guide\/#How_to_Estimate_After_Repair_Value_Step_by_Step\" >How to Estimate After Repair Value: Step by Step<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/arvcalc.com\/blog\/after-repair-value-guide\/#Step_1_Find_comparable_sales\" >Step 1: Find comparable sales<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/arvcalc.com\/blog\/after-repair-value-guide\/#Step_2_Adjust_for_differences\" >Step 2: Adjust for differences<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/arvcalc.com\/blog\/after-repair-value-guide\/#Step_3_Calculate_the_weighted_average\" >Step 3: Calculate the weighted average<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/arvcalc.com\/blog\/after-repair-value-guide\/#After_Repair_Value_Formula\" >After Repair Value Formula<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/arvcalc.com\/blog\/after-repair-value-guide\/#How_ARV_Drives_Every_Deal_Decision\" >How ARV Drives Every Deal Decision<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/arvcalc.com\/blog\/after-repair-value-guide\/#Fix_and_flip_the_70_rule\" >Fix and flip: the 70% rule<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/arvcalc.com\/blog\/after-repair-value-guide\/#BRRRR_the_75_rule\" >BRRRR: the 75% rule<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/arvcalc.com\/blog\/after-repair-value-guide\/#Wholesaling_assignment_fee\" >Wholesaling: assignment fee<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/arvcalc.com\/blog\/after-repair-value-guide\/#Hard_money_lending\" >Hard money lending<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/arvcalc.com\/blog\/after-repair-value-guide\/#5_After_Repair_Value_Mistakes_That_Kill_Deals\" >5 After Repair Value Mistakes That Kill Deals<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/arvcalc.com\/blog\/after-repair-value-guide\/#ARV_Confidence_How_to_Know_If_Your_Estimate_Is_Reliable\" >ARV Confidence: How to Know If Your Estimate Is Reliable<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/arvcalc.com\/blog\/after-repair-value-guide\/#After_Repair_Value_vs_Appraisal_Value\" >After Repair Value vs Appraisal Value<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/arvcalc.com\/blog\/after-repair-value-guide\/#After_Repair_Value_Benchmarks_by_Market_2026\" >After Repair Value Benchmarks by Market (2026)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/arvcalc.com\/blog\/after-repair-value-guide\/#Price_Per_Square_Foot_When_It_Works_and_When_It_Misleads\" >Price Per Square Foot: When It Works and When It Misleads<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/arvcalc.com\/blog\/after-repair-value-guide\/#How_to_Use_the_ARV_Calculator\" >How to Use the ARV Calculator<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/arvcalc.com\/blog\/after-repair-value-guide\/#What_ARV_Cannot_Tell_You\" >What ARV Cannot Tell You<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/arvcalc.com\/blog\/after-repair-value-guide\/#Frequently_Asked_Questions\" >Frequently Asked Questions<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/arvcalc.com\/blog\/after-repair-value-guide\/#How_many_comps_do_I_need_for_a_reliable_after_repair_value_estimate\" >How many comps do I need for a reliable after repair value estimate?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-21\" href=\"https:\/\/arvcalc.com\/blog\/after-repair-value-guide\/#Should_I_use_pending_sales_or_only_closed_sales_for_ARV\" >Should I use pending sales or only closed sales for ARV?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-22\" href=\"https:\/\/arvcalc.com\/blog\/after-repair-value-guide\/#How_far_off_can_an_after_repair_value_estimate_be\" >How far off can an after repair value estimate be?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-23\" href=\"https:\/\/arvcalc.com\/blog\/after-repair-value-guide\/#What_is_the_difference_between_ARV_and_market_value\" >What is the difference between ARV and market value?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-24\" href=\"https:\/\/arvcalc.com\/blog\/after-repair-value-guide\/#Can_I_estimate_ARV_without_an_agent_or_MLS_access\" >Can I estimate ARV without an agent or MLS access?<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-25\" href=\"https:\/\/arvcalc.com\/blog\/after-repair-value-guide\/#Related_Calculators\" >Related Calculators<\/a><\/li><\/ul><\/nav><\/div>\n<h2 id=\"what-is-arv\"><span class=\"ez-toc-section\" id=\"What_Is_After_Repair_Value\"><\/span>What Is After Repair Value?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>After repair value answers one question: what will this property sell for (or appraise at) once the renovation is finished?<\/p>\n<p>Investors use ARV at two critical decision points. Before buying, ARV determines the maximum purchase price that keeps the deal profitable. After rehab, ARV determines how much equity exists in the property \u2014 which affects refinance proceeds for BRRRR deals or expected sale price for flips.<\/p>\n<p>Banks and hard money lenders also care about ARV. Many hard money loans are underwritten based on a percentage of ARV rather than the current &#8220;as-is&#8221; value. A lender offering 70% of ARV on a property estimated at $250,000 will fund up to $175,000 \u2014 regardless of the purchase price.<\/p>\n<h2 id=\"how-to-estimate\"><span class=\"ez-toc-section\" id=\"How_to_Estimate_After_Repair_Value_Step_by_Step\"><\/span>How to Estimate After Repair Value: Step by Step<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Professional appraisers and experienced investors follow the same basic process. The process works like this.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Step_1_Find_comparable_sales\"><\/span>Step 1: Find comparable sales<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Pull 3-5 recently sold properties that match your subject property as closely as possible. &#8220;Recently&#8221; means within the last 3-6 months \u2014 older comps may not reflect current market conditions.<\/p>\n<p>Criteria for a good comp:<\/p>\n<table style=\"width:100%;border-collapse:collapse;margin:1.5em 0\">\n<thead>\n<tr style=\"background:#1e3a5f;color:#fff\">\n<th style=\"padding:12px;text-align:left\">Factor<\/th>\n<th style=\"padding:12px;text-align:left\">Ideal Match<\/th>\n<th style=\"padding:12px;text-align:left\">Acceptable Range<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr style=\"background:#f8fafc\">\n<td style=\"padding:10px;border-bottom:1px solid #e2e8f0\">Distance<\/td>\n<td style=\"padding:10px;border-bottom:1px solid #e2e8f0\">Same subdivision<\/td>\n<td style=\"padding:10px;border-bottom:1px solid #e2e8f0\">Within 0.5 miles (1 mile max in rural)<\/td>\n<\/tr>\n<tr style=\"background:#ffffff\">\n<td style=\"padding:10px;border-bottom:1px solid #e2e8f0\">Sale date<\/td>\n<td style=\"padding:10px;border-bottom:1px solid #e2e8f0\">Last 90 days<\/td>\n<td style=\"padding:10px;border-bottom:1px solid #e2e8f0\">Last 6 months<\/td>\n<\/tr>\n<tr style=\"background:#f8fafc\">\n<td style=\"padding:10px;border-bottom:1px solid #e2e8f0\">Square footage<\/td>\n<td style=\"padding:10px;border-bottom:1px solid #e2e8f0\">Within 10%<\/td>\n<td style=\"padding:10px;border-bottom:1px solid #e2e8f0\">Within 20%<\/td>\n<\/tr>\n<tr style=\"background:#ffffff\">\n<td style=\"padding:10px;border-bottom:1px solid #e2e8f0\">Bed\/bath count<\/td>\n<td style=\"padding:10px;border-bottom:1px solid #e2e8f0\">Exact match<\/td>\n<td style=\"padding:10px;border-bottom:1px solid #e2e8f0\">\u00b11 bedroom, \u00b11 bathroom<\/td>\n<\/tr>\n<tr style=\"background:#f8fafc\">\n<td style=\"padding:10px;border-bottom:1px solid #e2e8f0\">Year built<\/td>\n<td style=\"padding:10px;border-bottom:1px solid #e2e8f0\">Same decade<\/td>\n<td style=\"padding:10px;border-bottom:1px solid #e2e8f0\">Within 20 years<\/td>\n<\/tr>\n<tr style=\"background:#ffffff\">\n<td style=\"padding:10px;border-bottom:1px solid #e2e8f0\">Condition<\/td>\n<td style=\"padding:10px;border-bottom:1px solid #e2e8f0\">Renovated\/updated<\/td>\n<td style=\"padding:10px;border-bottom:1px solid #e2e8f0\">Good or better (adjust if not)<\/td>\n<\/tr>\n<tr style=\"background:#f8fafc\">\n<td style=\"padding:10px;border-bottom:1px solid #e2e8f0\">Property type<\/td>\n<td style=\"padding:10px;border-bottom:1px solid #e2e8f0\">Same (SFR, duplex, etc.)<\/td>\n<td style=\"padding:10px;border-bottom:1px solid #e2e8f0\">Must match \u2014 never mix types<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>Where to find comps: MLS (via agent), <a href=\"https:\/\/www.zillow.com\/research\/\" target=\"_blank\" rel=\"noopener\">Zillow sold data<\/a>, Redfin, county assessor records, PropStream, or BatchLeads.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Step_2_Adjust_for_differences\"><\/span>Step 2: Adjust for differences<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>No two properties are identical. Adjustments account for the differences between each comp and your subject property after renovation.<\/p>\n<table style=\"width:100%;border-collapse:collapse;margin:1.5em 0\">\n<thead>\n<tr style=\"background:#1e3a5f;color:#fff\">\n<th style=\"padding:12px;text-align:left\">Adjustment<\/th>\n<th style=\"padding:12px;text-align:left\">Typical Range<\/th>\n<th style=\"padding:12px;text-align:left\">Direction<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr style=\"background:#f8fafc\">\n<td style=\"padding:10px;border-bottom:1px solid #e2e8f0\">Square footage<\/td>\n<td style=\"padding:10px;border-bottom:1px solid #e2e8f0\">$50-$150 per sqft difference<\/td>\n<td style=\"padding:10px;border-bottom:1px solid #e2e8f0\">Add if subject is larger<\/td>\n<\/tr>\n<tr style=\"background:#ffffff\">\n<td style=\"padding:10px;border-bottom:1px solid #e2e8f0\">Extra bedroom<\/td>\n<td style=\"padding:10px;border-bottom:1px solid #e2e8f0\">$10,000-$25,000<\/td>\n<td style=\"padding:10px;border-bottom:1px solid #e2e8f0\">Add if subject has more<\/td>\n<\/tr>\n<tr style=\"background:#f8fafc\">\n<td style=\"padding:10px;border-bottom:1px solid #e2e8f0\">Extra bathroom<\/td>\n<td style=\"padding:10px;border-bottom:1px solid #e2e8f0\">$8,000-$20,000<\/td>\n<td style=\"padding:10px;border-bottom:1px solid #e2e8f0\">Add if subject has more<\/td>\n<\/tr>\n<tr style=\"background:#ffffff\">\n<td style=\"padding:10px;border-bottom:1px solid #e2e8f0\">Garage (2-car vs none)<\/td>\n<td style=\"padding:10px;border-bottom:1px solid #e2e8f0\">$15,000-$30,000<\/td>\n<td style=\"padding:10px;border-bottom:1px solid #e2e8f0\">Add if subject has garage<\/td>\n<\/tr>\n<tr style=\"background:#f8fafc\">\n<td style=\"padding:10px;border-bottom:1px solid #e2e8f0\">Lot size (per acre)<\/td>\n<td style=\"padding:10px;border-bottom:1px solid #e2e8f0\">Varies heavily by market<\/td>\n<td style=\"padding:10px;border-bottom:1px solid #e2e8f0\">Add if subject lot is larger<\/td>\n<\/tr>\n<tr style=\"background:#ffffff\">\n<td style=\"padding:10px;border-bottom:1px solid #e2e8f0\">Condition (updated vs dated)<\/td>\n<td style=\"padding:10px;border-bottom:1px solid #e2e8f0\">$15,000-$40,000<\/td>\n<td style=\"padding:10px;border-bottom:1px solid #e2e8f0\">Subtract if comp is newer\/nicer<\/td>\n<\/tr>\n<tr style=\"background:#f8fafc\">\n<td style=\"padding:10px;border-bottom:1px solid #e2e8f0\">Pool<\/td>\n<td style=\"padding:10px;border-bottom:1px solid #e2e8f0\">$10,000-$25,000 (market-dependent)<\/td>\n<td style=\"padding:10px;border-bottom:1px solid #e2e8f0\">Add only in warm climates<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>Adjustment logic works one way: you always adjust the <strong>comp price<\/strong> to match the subject property, never the other way around. If your subject has 3 bedrooms and the comp has 4, you subtract $15,000-$20,000 from the comp price.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Step_3_Calculate_the_weighted_average\"><\/span>Step 3: Calculate the weighted average<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>After adjustments, each comp gives you an adjusted sale price. Your after repair value estimate is typically the median or weighted average of these adjusted prices. Use the median when you have one comp that is significantly different from the others \u2014 it prevents outliers from skewing the result.<\/p>\n<p>Example with 4 comps:<\/p>\n<table style=\"width:100%;border-collapse:collapse;margin:1.5em 0\">\n<thead>\n<tr style=\"background:#1e3a5f;color:#fff\">\n<th style=\"padding:12px;text-align:left\">Comp<\/th>\n<th style=\"padding:12px;text-align:left\">Sale Price<\/th>\n<th style=\"padding:12px;text-align:left\">Adjustments<\/th>\n<th style=\"padding:12px;text-align:left\">Adjusted Price<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr style=\"background:#f8fafc\">\n<td style=\"padding:10px;border-bottom:1px solid #e2e8f0\">123 Oak St (0.2 mi, 45 days ago)<\/td>\n<td style=\"padding:10px;border-bottom:1px solid #e2e8f0\">$245,000<\/td>\n<td style=\"padding:10px;border-bottom:1px solid #e2e8f0\">+$12,000 (smaller lot)<\/td>\n<td style=\"padding:10px;border-bottom:1px solid #e2e8f0\">$257,000<\/td>\n<\/tr>\n<tr style=\"background:#ffffff\">\n<td style=\"padding:10px;border-bottom:1px solid #e2e8f0\">456 Elm Ave (0.3 mi, 60 days ago)<\/td>\n<td style=\"padding:10px;border-bottom:1px solid #e2e8f0\">$268,000<\/td>\n<td style=\"padding:10px;border-bottom:1px solid #e2e8f0\">-$8,000 (extra bath)<\/td>\n<td style=\"padding:10px;border-bottom:1px solid #e2e8f0\">$260,000<\/td>\n<\/tr>\n<tr style=\"background:#f8fafc\">\n<td style=\"padding:10px;border-bottom:1px solid #e2e8f0\">789 Pine Dr (0.4 mi, 30 days ago)<\/td>\n<td style=\"padding:10px;border-bottom:1px solid #e2e8f0\">$252,000<\/td>\n<td style=\"padding:10px;border-bottom:1px solid #e2e8f0\">+$5,000 (no garage)<\/td>\n<td style=\"padding:10px;border-bottom:1px solid #e2e8f0\">$257,000<\/td>\n<\/tr>\n<tr style=\"background:#ffffff\">\n<td style=\"padding:10px;border-bottom:1px solid #e2e8f0\">321 Maple Ln (0.5 mi, 90 days ago)<\/td>\n<td style=\"padding:10px;border-bottom:1px solid #e2e8f0\">$275,000<\/td>\n<td style=\"padding:10px;border-bottom:1px solid #e2e8f0\">-$18,000 (newer build, pool)<\/td>\n<td style=\"padding:10px;border-bottom:1px solid #e2e8f0\">$257,000<\/td>\n<\/tr>\n<tr style=\"background:#f0fdf4;border-top:2px solid #1e3a5f\">\n<td style=\"padding:10px;border-bottom:1px solid #e2e8f0\"><strong>Estimated ARV<\/strong><\/td>\n<td style=\"padding:10px;border-bottom:1px solid #e2e8f0\" colspan=\"2\"><strong>Median of adjusted prices<\/strong><\/td>\n<td style=\"padding:10px;border-bottom:1px solid #e2e8f0\"><strong>$257,000<\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>With four comps clustering around $257,000-$260,000, you can be fairly confident the after repair value lands in that range. A confidence range of \u00b1$5,000 to \u00b1$10,000 is reasonable here because the comps agree closely.<\/p>\n<h2 id=\"arv-formula\"><span class=\"ez-toc-section\" id=\"After_Repair_Value_Formula\"><\/span>After Repair Value Formula<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>At its simplest:<\/p>\n<p><strong>ARV = Average Adjusted Comp Price<\/strong><\/p>\n<p>Or if you want to weight comps by quality (closer distance, more recent sale, fewer adjustments):<\/p>\n<p><strong>ARV = Weighted Average of Adjusted Comp Prices<\/strong><\/p>\n<p>Some investors use a shortcut formula that skips individual adjustments:<\/p>\n<p><strong>ARV = Average Price Per Square Foot of Comps \u00d7 Subject Square Footage<\/strong><\/p>\n<p>Price-per-sqft works as a quick screen but misses important factors like lot size, finishes, and layout. A 1,500 sqft ranch and a 1,500 sqft two-story in the same neighborhood can differ by $30,000+ because of layout preference. Always run full adjustments for any deal you are seriously considering.<\/p>\n<h2 id=\"arv-in-deals\"><span class=\"ez-toc-section\" id=\"How_ARV_Drives_Every_Deal_Decision\"><\/span>How ARV Drives Every Deal Decision<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"Fix_and_flip_the_70_rule\"><\/span>Fix and flip: the 70% rule<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Flippers use ARV to set their maximum purchase price:<\/p>\n<p><strong>Max Offer = ARV \u00d7 0.70 \u2212 Rehab Cost<\/strong><\/p>\n<p>With an ARV of $257,000 and $40,000 in rehab, max offer = $139,900. Overshoot the ARV by $20,000 and that max offer drops to $125,900 \u2014 or the deal stops making sense entirely. Run your flip numbers with the <a href=\"\/fix-and-flip-calculator\">Fix and Flip Calculator<\/a> once you have an ARV estimate.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"BRRRR_the_75_rule\"><\/span>BRRRR: the 75% rule<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>BRRRR investors use ARV to project refinance proceeds:<\/p>\n<p><strong>Refi Loan = ARV \u00d7 LTV (typically 75%)<\/strong><\/p>\n<p>An ARV of $257,000 at 75% LTV = $192,750 refi loan. If your all-in cost (purchase + rehab + holding costs) is $180,000, you recover your capital plus $12,750 in cash. Misjudge ARV by $30,000 and suddenly you are leaving $20,000+ in the deal. Use the <a href=\"\/brrrr-calculator\">BRRRR Calculator<\/a> to model different ARV scenarios.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Wholesaling_assignment_fee\"><\/span>Wholesaling: assignment fee<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Wholesalers use ARV to calculate what an end buyer will pay. A wholesale deal priced at 65% of ARV minus rehab gives the flipper room for profit and gives the wholesaler an assignment fee of $5,000-$15,000.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Hard_money_lending\"><\/span>Hard money lending<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Many hard money lenders cap loans at 65-70% of ARV. Overestimate ARV and you might get approved for a loan that the property cannot support. Underestimate and you leave funding on the table.<\/p>\n<h2 id=\"common-mistakes\"><span class=\"ez-toc-section\" id=\"5_After_Repair_Value_Mistakes_That_Kill_Deals\"><\/span>5 After Repair Value Mistakes That Kill Deals<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><strong>1. Using the highest comp instead of the median.<\/strong> Cherry-picking the one comp that sold for $290,000 while ignoring the three that sold for $255,000 is the fastest way to lose money. Appraisers use the middle of the range, and so should you.<\/p>\n<p><strong>2. Using comps that are too far away.<\/strong> Half a mile in a city is a different neighborhood. School district boundaries, flood zones, and even which side of a highway a property sits on can swing values by 10-15%. Stay within 0.5 miles in urban and suburban markets.<\/p>\n<p><strong>3. Ignoring condition adjustments.<\/strong> A comp that sold for $270,000 with a brand new kitchen and quartz countertops is not comparable to your property where the rehab plan includes builder-grade finishes. Match the renovation level, not just the address.<\/p>\n<p><strong>4. Stale comps.<\/strong> A sale from 8 months ago reflects a market that may not exist anymore. In fast-moving markets (up or down), comps older than 90 days need a time adjustment. Appraisers typically adjust 0.5-1% per month for market appreciation or depreciation.<\/p>\n<p><strong>5. Skipping the drive-by.<\/strong> Photos and MLS data do not show everything. A comp that looks great on paper might sit next to a commercial property, a busy road, or a house with 15 cars in the yard. Always drive the comp neighborhood before making a decision based on its sale price.<\/p>\n<h2 id=\"confidence\"><span class=\"ez-toc-section\" id=\"ARV_Confidence_How_to_Know_If_Your_Estimate_Is_Reliable\"><\/span>ARV Confidence: How to Know If Your Estimate Is Reliable<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Not all ARV estimates carry the same weight. How to gauge your confidence level:<\/p>\n<table style=\"width:100%;border-collapse:collapse;margin:1.5em 0\">\n<thead>\n<tr style=\"background:#1e3a5f;color:#fff\">\n<th style=\"padding:12px;text-align:left\">Confidence Level<\/th>\n<th style=\"padding:12px;text-align:left\">Comp Criteria<\/th>\n<th style=\"padding:12px;text-align:left\">Typical Range<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr style=\"background:#f8fafc\">\n<td style=\"padding:10px;border-bottom:1px solid #e2e8f0;color:#16a34a;font-weight:600\">HIGH<\/td>\n<td style=\"padding:10px;border-bottom:1px solid #e2e8f0\">4+ comps, all within 0.3 mi, sold <90 days, adjusted prices within 5% of each other<\/td>\n<td style=\"padding:10px;border-bottom:1px solid #e2e8f0\">\u00b13-5%<\/td>\n<\/tr>\n<tr style=\"background:#ffffff\">\n<td style=\"padding:10px;border-bottom:1px solid #e2e8f0;color:#f59e0b;font-weight:600\">MEDIUM<\/td>\n<td style=\"padding:10px;border-bottom:1px solid #e2e8f0\">3 comps, within 0.5 mi, sold <6 months, adjusted prices within 10%<\/td>\n<td style=\"padding:10px;border-bottom:1px solid #e2e8f0\">\u00b15-10%<\/td>\n<\/tr>\n<tr style=\"background:#f8fafc\">\n<td style=\"padding:10px;border-bottom:1px solid #e2e8f0;color:#dc2626;font-weight:600\">LOW<\/td>\n<td style=\"padding:10px;border-bottom:1px solid #e2e8f0\">1-2 comps, >0.5 mi, sold >6 months ago, or large adjustments needed<\/td>\n<td style=\"padding:10px;border-bottom:1px solid #e2e8f0\">\u00b110-20%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>Low-confidence ARV estimates are dangerous. On a $250,000 property, a \u00b115% range means your actual value could land anywhere between $212,500 and $287,500 \u2014 a $75,000 spread. Making a purchase decision on that kind of uncertainty is closer to gambling than investing.<\/p>\n<p>When confidence is low, either find more comps (expand search area, look at pending sales), wait for new sales data, or budget a much larger margin of safety into your offer price.<\/p>\n<h2 id=\"appraisal\"><span class=\"ez-toc-section\" id=\"After_Repair_Value_vs_Appraisal_Value\"><\/span>After Repair Value vs Appraisal Value<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Your ARV estimate and the official bank appraisal may not agree. Understanding why helps you manage risk.<\/p>\n<p>Appraisers follow <a href=\"https:\/\/www.fanniemae.com\/content\/guide\/selling\/b4\/1.3\/09.html\" target=\"_blank\" rel=\"noopener\">Fannie Mae guidelines<\/a> which include specific rules about comp selection, adjustment caps, and supportable conclusions. An investor pulling comps from Zillow operates under no such constraints.<\/p>\n<p>Common reasons your ARV comes in higher than the appraisal:<\/p>\n<ul>\n<li>You used a comp that the appraiser rejected (too far, too old, different property type)<\/li>\n<li>Your renovation scope differs from what the appraiser inspected \u2014 plans changed mid-project<\/li>\n<li>Market shifted between when you estimated ARV and when the appraisal happened<\/li>\n<li>Appraiser used more conservative adjustments than you did<\/li>\n<\/ul>\n<p>Rule of thumb: budget your deal assuming the appraisal comes in 5-10% below your ARV estimate. If the deal still works at that lower number, you have a reasonable safety margin.<\/p>\n<h2 id=\"by-market\"><span class=\"ez-toc-section\" id=\"After_Repair_Value_Benchmarks_by_Market_2026\"><\/span>After Repair Value Benchmarks by Market (2026)<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<table style=\"width:100%;border-collapse:collapse;margin:1.5em 0\">\n<thead>\n<tr style=\"background:#1e3a5f;color:#fff\">\n<th style=\"padding:12px;text-align:left\">Market Type<\/th>\n<th style=\"padding:12px;text-align:left\">Typical As-Is<\/th>\n<th style=\"padding:12px;text-align:left\">Typical ARV<\/th>\n<th style=\"padding:12px;text-align:left\">Spread<\/th>\n<th style=\"padding:12px;text-align:left\">Notes<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr style=\"background:#f8fafc\">\n<td style=\"padding:10px;border-bottom:1px solid #e2e8f0\">Midwest (OH, IN, MO)<\/td>\n<td style=\"padding:10px;border-bottom:1px solid #e2e8f0\">$80-150K<\/td>\n<td style=\"padding:10px;border-bottom:1px solid #e2e8f0\">$150-250K<\/td>\n<td style=\"padding:10px;border-bottom:1px solid #e2e8f0;color:#16a34a;font-weight:600\">40-60%<\/td>\n<td style=\"padding:10px;border-bottom:1px solid #e2e8f0\">Best spread, BRRRR-friendly<\/td>\n<\/tr>\n<tr style=\"background:#ffffff\">\n<td style=\"padding:10px;border-bottom:1px solid #e2e8f0\">Southeast (TN, GA, AL)<\/td>\n<td style=\"padding:10px;border-bottom:1px solid #e2e8f0\">$120-200K<\/td>\n<td style=\"padding:10px;border-bottom:1px solid #e2e8f0\">$200-320K<\/td>\n<td style=\"padding:10px;border-bottom:1px solid #e2e8f0;color:#16a34a;font-weight:600\">35-50%<\/td>\n<td style=\"padding:10px;border-bottom:1px solid #e2e8f0\">Strong appreciation markets<\/td>\n<\/tr>\n<tr style=\"background:#f8fafc\">\n<td style=\"padding:10px;border-bottom:1px solid #e2e8f0\">Texas metros<\/td>\n<td style=\"padding:10px;border-bottom:1px solid #e2e8f0\">$180-280K<\/td>\n<td style=\"padding:10px;border-bottom:1px solid #e2e8f0\">$280-400K<\/td>\n<td style=\"padding:10px;border-bottom:1px solid #e2e8f0\">30-40%<\/td>\n<td style=\"padding:10px;border-bottom:1px solid #e2e8f0\">Watch property tax impact on buyer pool<\/td>\n<\/tr>\n<tr style=\"background:#ffffff\">\n<td style=\"padding:10px;border-bottom:1px solid #e2e8f0\">Coastal (CA, NY, WA)<\/td>\n<td style=\"padding:10px;border-bottom:1px solid #e2e8f0\">$400-600K<\/td>\n<td style=\"padding:10px;border-bottom:1px solid #e2e8f0\">$500-750K<\/td>\n<td style=\"padding:10px;border-bottom:1px solid #e2e8f0;color:#dc2626\">15-25%<\/td>\n<td style=\"padding:10px;border-bottom:1px solid #e2e8f0\">Thin spread, hard to BRRRR<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>Markets with wider spreads between as-is and ARV give investors more room for error. Midwest markets consistently offer 40-60% upside through renovation, which is why they dominate the BRRRR and fix-and-flip space.<\/p>\n<h2 id=\"price-per-sqft\"><span class=\"ez-toc-section\" id=\"Price_Per_Square_Foot_When_It_Works_and_When_It_Misleads\"><\/span>Price Per Square Foot: When It Works and When It Misleads<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Many investors default to price-per-square-foot as their primary ARV method. Pull 5 comps, average their $\/sqft, multiply by your subject&#8217;s square footage. Quick and easy.<\/p>\n<p>It works well when comps are highly similar \u2014 same neighborhood, same era, same layout type. In a subdivision where every house is a 1970s 1,400 sqft ranch on a quarter-acre lot, $\/sqft gives you a reliable number fast.<\/p>\n<p>Where it breaks down:<\/p>\n<ul>\n<li>Mixed property types \u2014 a 1,200 sqft bungalow and a 1,200 sqft two-story have different price dynamics even at the same square footage<\/li>\n<li>Significant lot size differences \u2014 a property on 0.15 acres vs 0.5 acres commands a premium that $\/sqft ignores<\/li>\n<li>Finish level gaps \u2014 builder-grade rehab vs high-end finishes can mean a $30\/sqft difference in the same zip code<\/li>\n<li>Very small or very large properties \u2014 $\/sqft tends to be higher for smaller homes and lower for larger ones, so averaging across different sizes distorts the number<\/li>\n<\/ul>\n<p>Best practice: use $\/sqft as a sanity check against your comp-based ARV. If your adjusted comps suggest $257,000 and the $\/sqft method gives you $252,000, you are probably in the right range. If the two methods differ by more than 10%, dig into why \u2014 one of your comps or adjustments may be off.<\/p>\n<h2 id=\"calculator\"><span class=\"ez-toc-section\" id=\"How_to_Use_the_ARV_Calculator\"><\/span>How to Use the ARV Calculator<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Our ARV Calculator walks through the comp-based estimation process step by step.<\/p>\n<p><strong>Enter your comps:<\/strong> sale price, square footage, beds, baths, distance, sale date, and condition for each. Add 3-5 comps for best results.<\/p>\n<p><strong>Enter your subject property:<\/strong> post-renovation square footage, bed\/bath count, planned finish level, lot size.<\/p>\n<p>What comes out: an estimated ARV based on adjusted comp prices, a confidence range showing the likely spread, and a confidence grade (high\/medium\/low) based on how closely your comps match.<\/p>\n<p>Three modes: standard ARV estimation, find the required purchase price for a target profit (flip mode), and find the maximum all-in cost for full capital recovery (BRRRR mode).<\/p>\n<h2 id=\"limitations\"><span class=\"ez-toc-section\" id=\"What_ARV_Cannot_Tell_You\"><\/span>What ARV Cannot Tell You<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>ARV is an estimate, not a guarantee. A few things it does not account for:<\/p>\n<p>Market shifts between purchase and sale. In a declining market, ARV at purchase time may be higher than actual sale price 6 months later. In appreciating markets, the opposite is true.<\/p>\n<p>Renovation quality gaps. ARV assumes your renovation matches the comps you used. If comps had high-end finishes and your rehab uses builder-grade materials, the actual sale price will be lower than your ARV estimate.<\/p>\n<p>Buyer financing environment. Rising mortgage rates reduce the buyer pool and can suppress sale prices even when comps from 3 months ago supported a higher number.<\/p>\n<p>For a complete deal analysis after estimating ARV, use the Fix and Flip Calculator for flips or the BRRRR Calculator for buy-and-hold projects.<\/p>\n<h2 id=\"faq\"><span class=\"ez-toc-section\" id=\"Frequently_Asked_Questions\"><\/span>Frequently Asked Questions<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"How_many_comps_do_I_need_for_a_reliable_after_repair_value_estimate\"><\/span>How many comps do I need for a reliable after repair value estimate?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Three is the minimum. Four or five is better. With fewer than three comps, the confidence range widens significantly and your estimate becomes unreliable. If you cannot find three comparable sales within a reasonable distance and timeframe, the market may not have enough data to support a solid ARV \u2014 proceed with extra caution.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Should_I_use_pending_sales_or_only_closed_sales_for_ARV\"><\/span>Should I use pending sales or only closed sales for ARV?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Closed sales are the standard because they reflect actual transaction prices. Pending sales (under contract but not yet closed) can supplement your analysis in slow markets where recent closed comps are scarce. Keep in mind that pending sales sometimes fall through or close at different prices than listed.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"How_far_off_can_an_after_repair_value_estimate_be\"><\/span>How far off can an after repair value estimate be?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>With strong comps (4+, nearby, recent), ARV estimates typically land within 3-5% of the eventual appraisal or sale price. With weak comps, the margin can be 10-20% or more. Every $10,000 of ARV overestimation costs roughly $7,000-$7,500 in reduced flip profit or refi proceeds.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"What_is_the_difference_between_ARV_and_market_value\"><\/span>What is the difference between ARV and market value?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Market value is what a property is worth right now, in its current condition. ARV is the projected value after renovations are complete. For a property that needs no work, ARV and market value are the same number. For a distressed property needing $50,000 in rehab, market value might be $150,000 while ARV is $230,000.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Can_I_estimate_ARV_without_an_agent_or_MLS_access\"><\/span>Can I estimate ARV without an agent or MLS access?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Yes, though with less precision. Zillow sold data, Redfin, Realtor.com, and county assessor records all provide recent sale prices. What you lose without MLS is interior photos and detailed property descriptions \u2014 which makes condition adjustments harder. For serious deals, getting MLS access through an investor-friendly agent is worth the effort.<\/p>\n<h2 id=\"related\"><span class=\"ez-toc-section\" id=\"Related_Calculators\"><\/span>Related Calculators<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li><a href=\"\/arv-calculator\">ARV Calculator<\/a> \u2014 Estimate ARV from comparable sales<\/li>\n<li><a href=\"\/fix-and-flip-calculator\">Fix and Flip Calculator<\/a> \u2014 Full flip analysis using your ARV estimate<\/li>\n<li><a href=\"\/brrrr-calculator\">BRRRR Calculator<\/a> \u2014 Capital recovery analysis based on ARV<\/li>\n<li><a href=\"\/rehab-cost-estimator\">Rehab Cost Estimator<\/a> \u2014 Room-by-room renovation budget<\/li>\n<li><a href=\"\/70-percent-rule-calculator\">70% Rule Calculator<\/a> \u2014 Quick max offer from ARV<\/li>\n<li><a href=\"\/hard-money-loan-calculator\">Hard Money Loan Calculator<\/a> \u2014 Financing based on ARV percentage<\/li>\n<\/ul>\n<p style=\"margin-top:30px;padding:15px;background:#f0f4f8;border-radius:8px;font-size:14px;color:#666;\"><strong>Disclaimer:<\/strong> This article is for educational purposes only and does not constitute financial, investment, legal, or tax advice. Real estate investing involves significant risk, including the potential loss of capital. All numbers, rates, and projections are illustrative examples and may not reflect your specific situation. Consult qualified financial, legal, and tax professionals before making any investment decisions.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>After repair value (ARV) is the estimated market price of a property after renovations are complete. For fix-and-flip investors, BRRRR investors, and wholesalers, ARV is the single most important number&#8230;<\/p>\n","protected":false},"author":1,"featured_media":93,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[],"class_list":["post-92","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-real-estate-investing"],"_links":{"self":[{"href":"https:\/\/arvcalc.com\/blog\/wp-json\/wp\/v2\/posts\/92","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/arvcalc.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/arvcalc.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/arvcalc.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/arvcalc.com\/blog\/wp-json\/wp\/v2\/comments?post=92"}],"version-history":[{"count":5,"href":"https:\/\/arvcalc.com\/blog\/wp-json\/wp\/v2\/posts\/92\/revisions"}],"predecessor-version":[{"id":369,"href":"https:\/\/arvcalc.com\/blog\/wp-json\/wp\/v2\/posts\/92\/revisions\/369"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/arvcalc.com\/blog\/wp-json\/wp\/v2\/media\/93"}],"wp:attachment":[{"href":"https:\/\/arvcalc.com\/blog\/wp-json\/wp\/v2\/media?parent=92"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/arvcalc.com\/blog\/wp-json\/wp\/v2\/categories?post=92"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/arvcalc.com\/blog\/wp-json\/wp\/v2\/tags?post=92"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}